12/17/1986 Meeting - Laserfiche WebLink

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Revenue-Backed General Obligation bonds. He sa i d it probably will not be necessary to raise property taxes to pay the debt service on the bonds if the e other methods proposed are implemented. He sa i d he wi 11 support the subcommittee recommendations. Ms. Bascom said Eugene's economic well-being requires the airport expansion. She said she supports paying the debt service from existing resources. She said the airport improvement is a capital project and capital budget funds should be used for it. She said she does not expect to have to decrease vital City services to pay for the expansion. Ms. Ehrman said she supports the airport expansion. She said as many funds as possible were obtained from outside sources but other local jurisdictions did not agree to support the airport financially. She said she will support authorizing funds to continue the project until March 31. She also favors using $1.1 million up-front money because it will reduce the debt. She said General Obligation bonds are the most cost-effective method of financing the debt. She said she cannot support a resolution that states that property taxes will not be increased to retire the bonds. She said future councils may decide to increase property taxes to pay for the expansion and the proposal before the voters will permit property taxes to be raised. She said the airport expansion is a major project and. because City resources are decreasing, property taxes may have to be increased to pay for it. Mayor Obie said he will support the council's decision. He said he favors the subcommittee recommendation. He emphasized the importance of the airport expansion to the community's economy. He said there are lots of other needs in the community that can only be paid for by people with jobs. He said some e City services may have to be reduced to pay for the airport expansion but it is an important investment. Mayor Obie said he supports allowing the public to vote on the project. He said people will be given an opportunity to indicate that they are willing to invest and move ahead. He said he does not want the project to be controversial for the next five years. Mr. Hansen moved, seconded by Ms. Ehrman, to approve the expenditure of an amount not to exceed $300,000 for the purpose of design work and contract document preparation for the Airport project prior to March 31, 1987. Mr. Hansen said approval of the motion will maintain the schedule for the project. The landside and airside parts of the project will be advertised in February 1987 and construction will begin in June 1987. Construction on the terminal will begin in December 1987. Ms. Ehrman said $300,000 is the minimum needed to prepare the designs for bids. She said the contractors will know the result of the vote before bids are submitted. The motion carried unanimously, 8:0. e MINUTES--Eugene City Council December 17, 1986 Page 7